Indian crypto exchange CoinDCX sets up protection fund for investors
CoinDCX, India’s leading crypto exchange announced the launch of its rainy day fund, which it called the Crypto Investors Protection Fund (CIPF). The fund will hold a 2% allocation of the trading fees the exchange charges users. It also confirmed that the CIPF amount would increase over time and promised to provide more information soon.
The exchange disclosed that it aims to strengthen trust in India’s growing crypto market, prioritizing advanced security procedures like two-factor authentication (2FA) and multi-party computation (MPC). According to CoinDCX, establishing the CIPF demonstrated its dedication to protecting India’s crypto ecosystem investors.
CoinDCX says CIPF is a safety net for investors
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We're here to set new standards in the Indian crypto ecosystem, fostering long-term trust and security.
Introducing Crypto Investors Protection Fund (CIPF). With an initial allocation of INR 50 crore, we are committed to adding 2% of brokerage income to the… pic.twitter.com/aTDb9asb9u
— CoinDCX: India's Safest Crypto Platform (@CoinDCX) August 7, 2024
CoinDCX affirmed that it was setting new standards in India’s crypto space by introducing the CIPF to foster long-term security and trust. The exchange confirmed that it was committed to adding 2% of brokerage income to the corpus and plans to increase the pool size in the future gradually. According to CoinDCX, the safety net fund would be used to compensate user losses incurred in unexpected security scenarios.
The leading crypto exchange mentioned that the CIPF would act like an insurance policy for its users’ crypto investments.
As an additional measure to protect investor funds, the exchange asserted that its customers’ funds would be stored in multiple locations, providing extra protection from hackers. The Indian crypto exchange disclosed that it would also build customer trust by openly declaring the amount of money it had in its coffers and its storage location(s). The exchange emphasized its commitment to following government regulations with regular security checks to ensure proper functioning.
CIPF part of CoinDCX’s push for a stronger Indian crypto community
The exchange claims to be the first officially registered Indian crypto exchange with an ISO 27001:2022 certification. With over 30 million crypto investors in India, CoinDCX declared its plans to build more confidence in crypto investment by creating a trustworthy and safer cryptocurrency market.
The co-founder of CoinDCX, Sumit Gupta, reaffirmed that the crypto exchange platform had made security its top priority by investing in security protocols that ensured the 24/7 protection of its customer assets. The exchange claimed that the CIPF was like wearing a seatbelt when driving since it did not guarantee the prevention of unfavorable events but would help in case they occurred.
In his words, Sumit Gupta said, “The CIPF will be one of its kind and a significant step towards building long-term trust in the Indian crypto ecosystem.”
The exchange asked India’s crypto enthusiasts to stay tuned for future details about its CIPF framework.
